Indonesia’s economic growth projection in 2022 is at 5.5% DBS Treasures eTalk Series presents insights, capture momentum and optimize right moment to customers investments | Bahasa

Indonesia.02 Dec 2021.3 min read

Webinar DBS eTalk Series entitled “2022 Leap Ahead: Economy Reopening & Strategic Sector Rotation”

Indonesia, 02 Dec 2021 - The spread of vaccinations, the government's fiscal and financial policies, as well as strong structural growth are expected to boost Indonesia's economic growth in the coming year. Bank DBS Indonesia through DBS Treasures and Manulife Aset Manajemen Indonesia (MAMI) presented a market outlook titled “2022 Leap Ahead: Economy Reopening & Strategic Sector Rotation” to provide insight into investment opportunities for customers. This session presented Special Staff of the Minister of Finance of the Republic of Indonesia, Yustinus Prastowo, Senior Economist of DBS, Radhika Rao, Chief Economist & Investment Strategist of Manulife Asset Management Indonesia, Katarina Setiawan and Special Staff of the Ministry of Finance, Titik Anas as the keynote speakers.

“The eTalk Series is a manifestation of DBS Treasures’ commitment to present insights. Moreover, the topics presented are aligned with the customer's profile, including their preferences in growing their portfolios. Moving forward, we will be holding more personalized eTalk sessions catered to the needs of customers including information on market condition, new product features as well as ultimate lifestyle. This is inline with our mission to provide a customized service, catered to each individual,” said Director of Consumer Banking PT Bank DBS Indonesia, Rudy Tandjung.

Bank Indonesia's optimism regarding the projection of Indonesia's economic growth in 20221, which ranges from 4.7%-5.5%, was welcomed by Bank DBS Indonesia. Senior Economist of DBS Bank, Radhika Rao, explained DBS Bank's view regarding this matter, “There are three important things that can trigger the increase of Indonesia's economic growth in 2022. First, Indonesia is predicted to be successful in vaccinating most of the adult population by March 2022. Second, the likelihood that Indonesia will be able to attract more investments and shift into more downstream commodity sectors as well as accelerate digitalisation, will help to return to a more durable and stable growth path. Third, Indonesia’s favourable fiscal track record and upcoming measures to lift the tax to GDP ratio are likely to add to the existing strength of debt ratio compared to the majority of countries in Asia.”

Furthermore, Radhika also said, “The vaccination program is one of the keys to successfully handling the pandemic in Indonesia. With the implementation of a massive and structured vaccination program, people's mobility will increase and this will trigger economic activity to start operating again. Indonesia itself is one of the countries that managed to get through the critical period of the pandemic in the fourth quarter of 2021 thanks to the reduction in the assumption of uncertainty regarding vaccine supply."

On the same occasion, the Special Staff of the Minister of Finance for Strategic Communication at the Ministry of Finance, Yustinus Prastowo, revealed that the approval of basic macroeconomic assumptions in the 2022 State Revenue and Expenditure Budget Draft (RAPBN) became the benchmark for the Indonesian government in welcoming the economy in 2022. He explained, “There are four important points agreed upon by the government and the DPR which will be the basis for determining the RAPBN. First, the economic growth was agreed to be in the range of 5.2% to 5.5%. Second, the inflation rate is set at 3%. Third, the rupiah exchange rate is determined to be no more than Rp14,350 per US dollar, and finally, the interest rate for Government Bonds (SUN) 10 in 2022 is set at 6.8%.”

In addition, the Indonesian Government has approved a number of tax measures, aimed to compensate for the weak revenues and the need for higher spending due to the pandemic. With the basic macroeconomic assumptions of the RAPBN and these steps, it is possible for the Indonesian people to optimize their investment opportunities.

Chief Economist & Investment Strategist Manulife Aset Manajemen Indonesia, Katarina Setiawan, said, “Indonesia and ASEAN-4 countries (Indonesia, Malaysia, the Philippines and Thailand) will experience growth in 2022. This is in contrary to the normal condition in the US and other parts of Asia. As a major producer of the world's top commodities, Indonesia provides natural hedge to spare the economy in the midst of inflation hikes. Indonesia also has sound structural stories, different to other Asia countries who have increased debt ratio and numbers of older generations. Some of these things have attracted investments in Indonesia, amid the diversification trends triggered by geopolitics and pandemic issues.”

Katarina also added, “Foreign fund influx into the stocks trade have strengthened during the Fed’s monetary tightening. Indonesia’s growth is partly due to the economy reopening in 2022. We see this sectoral rotation as a normal phenomenon supported by the domestic pandemic situation. Digital economy is still attractive with strong growth prospects, supported by potential inclusion of global stocks. The technology, green economy and telecommunications sector continue to be preferred, meanwhile bond is ready to face the global sentiment. A better macro fundamental and external stability are expected to maintain bond volatility in Indonesia. We share a positive perspective towards the capital market in 2022.”

In addition to providing insights to its customers, Bank DBS Indonesia also improves digitalization transformation - where all banking services ranging from opening savings accounts, time deposits, bond investments and mutual funds can be done easily on the digibank by DBS application. Through the digibank by DBS application, customers can easily find investment information and make transactions. This is in line with our vision of Live More Bank Less, where Bank DBS Indonesia is committed to providing a joyful banking experience for its customers.”



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DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 13 consecutive years from 2009 to 2021.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.

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